M/s. Gopuram Enterprises Pvt Ltd., vs. The Income Tax Officer

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TCA/373/2023HC Madras2025/MHC/108022 April 2025Bench: Honourable Dr Justice ANITA SUMANTH22 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that in cases where rectification petitions under Section 154 were filed after the original statement under Section 200A, the delay in filing appeals should be computed from the date of the rectified statement. The Court found merit in the assessee's argument that the cause of action for appeal arises from the final or rectified order. Regarding the delay in filing appeals, the Court differed with the Tribunal's view that the assessee had not acted bonafide. The Court reasoned that the assessee's explanation regarding the divergent views on the levy of interest under Section 234E was not incorrect, and there was nothing to indicate a lack of bonafide. The Court accepted the assessee's computation of delay at 260 days in Tabulation B. Consequently, the High Court condoned the delay in filing the appeals and remanded the matters to the Tribunal for hearing on merits. The appeals were allowed by way of remand.

What were the facts?

The assessee, M/s. Gopuram Enterprises Pvt Ltd., filed multiple appeals before the High Court against orders passed by the Income Tax Officer, TDS, CPC, Ghaziabad. The appeals concerned the delay in filing appeals against statements issued under Section 200A of the Income Tax Act, 1961. The assessee contended that the delay should be calculated from the date of rectified statements under Section 154, not the original ones. The revenue disputed this calculation, arguing for a much longer delay. The core of the dispute in some cases was the delay in filing appeals, with the assessee claiming a shorter delay and the revenue a significantly longer one. The High Court grouped the appeals into two categories based on the delay computation.

What were the issues?

1. Whether the delay in filing appeals should be computed from the date of the original statement issued under Section 200A of the Income Tax Act, 1961, or from the date of the rectified statement issued under Section 154 of the Act, in cases where rectification petitions were filed. Assessee's Contention: The assessee argued that the delay should be computed from the date of the rectified statement under Section 154, as this statement addressed issues raised by the assessee. They relied on the principle that the cause of action for appeal arises from the final order or rectified order. Revenue's Contention: The revenue contended that the delay should be computed from the date of the original statement under Section 200A, disputing the assessee's calculation of delay and asserting a much higher period of delay. 2. Whether the assessee's explanation for the delay in filing appeals, citing pendency of issues relating to the levy of interest under Section 234E before various judicial fora, was bonafide and acceptable. Assessee's Contention: The assessee argued that due to divergent views on the validity and effective date of the levy of interest under Section 234E, they were in a dilemma and filed appeals belatedly based on legal advice, acting bonafide. Revenue's Contention: The revenue (as represented by the Tribunal's rejection) contended that the explanation was not bonafide and unsubstantiated, as no evidence was provided regarding the legal advice sought.

Which sections of the Income-tax Act were involved?

Section 200A,Section 154,Section 234E

AI-generated summary — verify with the full judgment below

Heard together (5 matters)

ITA No. 1050/Chny/2022
ITA No.1049/Chny/2022
ITA No.1044/Chny/2022
ITA No.1045/Chny/2022
ITA.No.1038/Chny/2022

Read from the judgment's own cause title. This page is filed under one of them.

2025:MHC:1080 TCA No. 373 of 2023 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 22-04-2025 CORAM THE HONOURABLE DR JUSTICE ANITA SUMANTH AND THE HONOURABLE MR.JUSTICE C.KUMARAPPAN TCA No. 373 of 2023 AND TCA NO. 379 OF 2023,TCA NO. 376 OF 2023,TCA NO. 382 OF 2023,TCA NO. 378 OF 2023,TCA NO. 377 OF 2023,TCA NO. 385 OF 2023,CMP NO. 15378 OF 2023,CMP NO. 15344 OF 2023,CMP NO. 15338 OF 2023,CMP NO. 15336 OF 2023,CMP NO. 15311 OF 2023,TCA NO. 387 OF 2023,TCA NO. 388 OF 2023,CMP NO. 15306 OF 2023,TCA NO. 390 OF 2023,TCA NO. 374 OF 2023,CMP NO. 15316 OF 2023,CMP NO. 15315 OF 2023,CMP NO. 15328 OF 2023,CMP NO. 15325 OF 2023,CMP NO. 15362 OF 2023,CMP NO. 15355 OF 2023,CMP NO. 15347 OF 2023,CMP NO. 15331 OF 2023,CMP NO. 15319 OF 2023,TCA NO. 383 OF 2023,TCA NO. 386 OF 2023,CMP NO. 15318 OF 2023,CMP NO. 15365 OF 2023,CMP NO. 15323 OF 2023,TCA NO. 375 OF 2023,TCA NO. 389 OF 2023,TCA NO. 384 OF 2023,TCA NO. 380 OF 2023,TCA NO. 381 OF 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No. 31, Lazarus Church Road, R.A.Puram, Chennai 028. PAN.AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) TCA No. 379 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai-600 028 PAN- https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad Respondent(s) TCA No. 376 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) TCA No. 382 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) TCA No. 378 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R Appellant(s) Vs https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) TCA No. 377 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 600 028. Pan AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) TCA No. 385 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A. Puram, Chennai 28. Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) CMP No. 15378 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New NO.31, Lazarus Church Road, R.A.Puram, Chennai 600 028. PAN AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) CMP No. 15344 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 New No.31, Lazarus Church Road, R.A.Puram, Chennai-600 028 PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad Respondent(s) CMP No. 15338 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai-600 028 PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad Respondent(s) CMP No. 15336 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 600 028. Pan AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) CMP No. 15311 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No. 31, Lazarus Church Road, R.A.Puram, Chennai 028. PAN.AAACS9903R Appellant(s) https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) TCA No. 387 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai-600028 Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad Respondent(s) TCA No. 388 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai-600028 Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad Respondent(s) CMP No. 15306 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) TCA No. 390 of 2023 https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New NO.31, Lazarus Church Road, R.A.Puram, Chennai 600 028. PAN AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) TCA No. 374 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) CMP No. 15316 of 2023 1. M/s. Gopuram Enterprises Private Limited New No.31, Lazarus Church Road, R.A.Puram, Chennai 28, (PAN AAACS9903R) Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) CMP No. 15315 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) CMP No. 15328 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 600 028. Pan AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) CMP No. 15325 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) CMP No. 15362 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A. Puram, Chennai 28. Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 Respondent(s) CMP No. 15355 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai-600028 Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad Respondent(s) CMP No. 15347 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai-600028 Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad Respondent(s) CMP No. 15331 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) CMP No. 15319 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) TCA No. 383 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 600 028. PAN AAACS9903R Appellant(s) Vs 1. The Income Tax Officer, TDS, CPC, Chaziabad. Respondent(s) TCA No. 386 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai-600 028 PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad Respondent(s) CMP No. 15318 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai-600 028 PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 Respondent(s) CMP No. 15365 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A. Puram, Chennai 28. Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) CMP No. 15323 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No. 31, Lazarus Church Road, R.A.Puram, Chennai 028. PAN.AAACS9903R Appellant(s) Vs 1. The Income Tax Officer, TDS, CPC, Ghaziabad. Respondent(s) TCA No. 375 of 2023 1. M/s. Gopuram Enterprises Private Limited New No.31, Lazarus Church Road, R.A.Puram, Chennai 28, (PAN AAACS9903R) Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabed. Respondent(s) TCA No. 389 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 New No.31, Lazarus Church Road, R.A. Puram, Chennai 28. Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) TCA No. 384 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai-600 028 PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad Respondent(s) TCA No. 380 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No.31, Lazarus Church Road, R.A.Puram, Chennai 28. PAN- AAACS9903R Appellant(s) Vs 1. The Income Tax Officer TDS, CPC, Ghaziabad. Respondent(s) TCA No. 381 of 2023 1. M/s. Gopuram Enterprises Pvt Ltd., New No. 31, Lazarus Church Road, R.A.Puram, Chennai 028. PAN.AAACS9903R Appellant(s) https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 Vs 1. The Income Tax Officer, TDS, CPC, Ghaziabad. Respondent(s) TCA No. 373 of 2023 PRAYER To against order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31/01/2023 in ITA No. 1050/Chny/2022. TCA No. 379 of 2023 PRAYER to against the order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31/01/2023 in ITA No.1041/Chny/2022 TCA No. 376 of 2023 PRAYER To against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1042/Chny/2022. TCA No. 382 of 2023 PRAYER To against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1046/Chny/2022. TCA No. 378 of 2023 PRAYER To against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1047/Chny/2022. TCA No. 377 of 2023 PRAYER To against order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA No.1049/Chny/2022. TCA No. 385 of 2023 PRAYER To the High Court against the Order of the Income Tax Appellate Tribunal, Chennai B Bench Dated 31.01.2023 in ITA No.1053/Chny/2022. CMP No. 15378 of 2023 PRAYER To grant stay of operation of the impunged order of the Tribunal in ITA https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 No.1038/Chny/2022 dated 31.01.2023 for the assessment Year 2013-14 and further proceedings pursuant to the impugned order pending disposal of the above TCA. CMP No. 15344 of 2023 PRAYER to grant stay of operation of the impugned order of the Tribunal in ITA No.1052/Chny/2022 dt.31/01/2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals) CMP No. 15338 of 2023 PRAYER to grant stay of operation of the impugned order of the Tribunal in ITA No.1040/Chny/2022 dt.31/01/2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals) CMP No. 15336 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA.No.1048/Chny/2022 dated 31.01.2023 for the assessment Year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above TCA. CMP No. 15311 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No. 1050/Chny/2022 dt.31.01.2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals). TCA No. 387 of 2023 PRAYER To against order of the Income Tax Appellate Tribunal, Chennai B Bench dt. 31.01.2023 in ITA No.1044/Chny/2022 TCA No. 388 of 2023 PRAYER To against order of the Income Tax Appellate Tribunal, Chennai B Bench dt. 31.01.2023 in ITA No.1045/Chny/2022 CMP No. 15306 of 2023 https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No. 1036/Chny/2022 dt. 31.01.2023 for the assessment year 2013-14 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals). TCA No. 390 of 2023 PRAYER To against order of the Income Tax Appellate Tribunal, Chennai B Bench Dated 31.01.2023 in ITA.No.1038/Chny/2022. TCA No. 374 of 2023 PRAYER To against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1036/Chny/2022. CMP No. 15316 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA.NO. 1037/chny/2022 dt. 31.01.2023 for the assessment year 2013-14 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals). CMP No. 15315 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No. 1042/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeal). CMP No. 15328 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No.1049/Chny/2022 dated 31.01.2023 for the assessment Year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above TCA. CMP No. 15325 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No. 1043/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeal). https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 CMP No. 15362 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No. 1053/Chny/2022 dt. 31.01.2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals). CMP No. 15355 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No.1045/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above TCA CMP No. 15347 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No.1044/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above TCA CMP No. 15331 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No. 1046/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals). CMP No. 15319 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No. 1047/Chny/2022 dt. 31.01.2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals). TCA No. 383 of 2023 PRAYER To against order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA No.1048/Chny/2022. TCA No. 386 of 2023 PRAYER to against the order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31/01/2023 in ITA No.1052/Chny/2022 CMP No. 15318 of 2023 PRAYER to grant stay of operation of the impugned order of the Tribunal in ITA No.1041/Chny/2022 dt.31/01/2023 for the assessment year 2014-15 and further proceedings pursuant to the impugned order pending disposal of the above Tax https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 Case (Appeals) CMP No. 15365 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No. 1039/Chny/2022 dt.31.01.2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals). CMP No. 15323 of 2023 PRAYER To grant stay of operation of the impugned order of the Tribunal in ITA No. 1051/Chny/2022 dt.31.01.2023 for the assessment year 2015-16 and further proceedings pursuant to the impugned order pending disposal of the above Tax Case (Appeals). TCA No. 375 of 2023 PRAYER To against order of the Income Tax Appellate Tribunal, Chennai B Bench Dated 31.01.2023 in ITA.No. 1037/Chny/2022. TCA No. 389 of 2023 PRAYER To against the order of the Income Tax Appellate Tribunal, Chennai Bench B dated 31/01/2023 in ITA No. 1039/Chny/2022. TCA No. 384 of 2023 PRAYER to against the order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31/01/2023 in ITA No.1040/Chny/2022 TCA No. 380 of 2023 PRAYER To against the Order of the Income Tax Appellate Tribunal, Chennai B Bench dated 31.01.2023 in ITA.No. 1043/Chny/2022. TCA No. 381 of 2023 PRAYER To against the order of the Income Tax Appellate Tribunal, Chennai Bench B dated 31.01.2023 in ITA No. 1051/Chny /2022 For Appellant(s): MR. R. DEVARAJ (IN ALL TCAs) For Respondent(s): MS.KRITI SHARMA FOR DR.S. RAMASWAMY FOR THE RESPONDENT (IN ALL TCAs). https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 COMMON JUDGMENT (Order of the Court was made by Dr.Anita Sumanth J.) The following substantial questions of law have been admitted for consideration: 'a)Whether on the facts and in the circumstances of the case, the Tribunal was right by not condoning the delay, either it is inordinate delay or delay for few days, ignoring the settled laws. b)Whether on the facts and in the circumstances of the case, the Tribunal was right by not condoning the delay, taking into account Section 234 E of the Act is effective from 01/06/2015, whereas in the given case, the Assessment Year is 2013-14. c)Whether on the facts and in the circumstances of the case, the Tribunal was right by not considered that, no prejudice to the other side will occur by condoning the delay.' 2.This is a batch of 18 appeals challenging common order dated 31.01.2023 of the Income Tax Appellate Tribunal (Tribunal/ITAT) dismissing the appeals as being belated and rejecting the request for condonation of delay. The assessment years (AYs) relate to 2013-14 [TCA.Nos.374, 375, 389 & 390 of 2023], 2014-15 [TCA.Nos.376, 378, 379, 380, 382, 384, 387 & 388 of 2023] and 2015-16 [TCA.Nos.373, 377, 381, 383, 385 & 386 of 2023]. 3. The issue that arises for consideration on merits in all the appeals relates to the levy of interest under Section 234E of the Income Tax Act, 1961 (in short https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 'Act'). 4.Having heard Mr.R.Devaraj, learned counsel for the appellant/assessee and Dr.B.Ramaswamy, learned Senior Standing Counsel for the Income Tax Department, we find that the appeals may be grouped into two kinds. In nine (9) appeals there is no dispute with regard to the computation of delay, as the same has been rightly computed from the date of statement issued under Section 200A of the Act. Those appeals are tabulated below: Tabulation A Sl. No. Appeal No. FY/ Quarter Date of Passing Order Date of Filing Appeal Delay in Days T.C.Appeal No./2023 Date of Passing Order U/s 154 Delay in Days 1) NFAC/2013-14/ 10026979 2013-14/Q3 16/03/2014 17/11/2020 2408 Days 376 16/03/2014 2408 2) NFAC/2013-14/ 10011843 2013-14/Q3 16/03/2014 17/11/2020 2408 Days 382 16/03/2014 2408 3) NFAC/2013-14/ 10026958 2013-14/Q4 05/06/2014 17/11/2020 2327 Days 378 05/06/2014 2327 4) NFAC/2014-15/ 10027035 2014-15/Q1 29/07/2014 17/11/2020 2273 Days 383 29/07/2014 2273 5) NFAC/2014-15/ 10027034 2014-15/Q3 30/10/2015 17/11/2020 1815 Days 377 30/10/2015 1815 6) NFAC/2014-15/ 10027033 2014-15/Q4 08/04/2019 17/11/2020 559 Days 373 08/04/2019 559 7) NFAC/2014-15/ 10027030 2014-15/Q1 29/07/2014 17/11/2020 2273 Days 381 29/07/2014 2273 8) NFAC/2014-15/ 10027031 2014-15/Q3 05/05/2015 17/11/2020 1993 Days 386 05/05/2015 1993 9) NFAC/2014-15/ 10027032 2014-15/Q4 06/11/2015 17/11/2020 1808 Days 385 06/11/2015 1808 5.In the second group of nine (9) cases, the appellant has computed the delay at 260 days. However, according to the revenue, the delay is far higher, ranging between 1808 to 2410 days. Those appeals are tabulated below: https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 Tabulation B Sl. No. Appeal No. FY/ Quarter Date of Passing Order Date of Filing Appeal Delay in Days T.C.Appeal No./2023 Date of Passing Order U/s 154 Delay in Days 1) NFAC/2013-14/ 10026938 2012-13/Q3 12/12/2013 17/11/2020 2502 Days 389 03/03/2020 260 2) NFAC/2012-13/ 10026936 2012-13/Q2 12/12/2013 17/11/2020 2502 Days 374 03/03/2020 260 3) NFAC/2012-13/ 10026937 2012-13/Q3 12/03/2013 17/11/2020 2502 Days 375 03/03/2020 260 4) NFAC/2012-13/ 10026952 2012-13/Q2 12/03/2013 17/11/2020 2502 Days 390 03/03/2020 260 5) NFAC/2013-14/ 10027169 2013-14/Q1 16/03/2014 19/11/2020 2410 Days 384 16/03/2014 260 6) NFAC/2013-14/ 10026960 2013-14/Q2 16/03/2014 17/11/2020 2408 Days 379 03/03/2020 260 7) NFAC/2014-15/ 10026959 2013-14/Q4 05/06/2014 17/11/2020 2327 Days 380 05/06/2014 260 8) NFAC/2013-14/ 10026956 2013-14/Q1 16/03/2014 17/11/2020 2408 Days 387 03/03/2020 260 9) NFAC/2013-14/ 10046957 2013-14/Q2 16/03/2014 17/11/2020 2408 Days 388 03/03/2020 260 6.On a perusal of appeals in Tabulation B, we concur with the computation of delay per the assessee. In all these cases, after receipt of statement under Section 200A of the Act, the assessee has filed petitions under Section 154 seeking rectification of delay and subsequently statements under Section 200A read with Section 154 have been issued which had been challenged by way of appeal, albeit belatedly. 7.Thus, in these circumstances, the delay would run only from date of service of the statement as rectified under Section 154 of the Act and not from date of original statement issued under Section 200A. Hence, the delay in all cases in Tabulation B per the assessee is accepted at 260 days. https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 8.The reason for the delay is that the issue on merits, relating to the levy of interest under Section 234E of the Act was pending before various judicial Fora such as different Benches of the ITAT and High Courts. Divergent views had been taken in regard to the validity of the levy as well as the effective date of levy. 9.Hence, the appellant was in a dilemma as to whether to file the statutory appeals or await a finality of the matter before the Supreme Court. Ultimately, and decided based on legal advice, it had chosen to file the statutory appeals belatedly. The Tribunal has rejected the explanation on the ground that it is not bonafide and unsubstantiated since no evidence had been placed by the appellant in regard to the legal advice sought. 10.The stand of the appellant, regarding divergence of views on the levy of interest under Section 234E is not incorrect. Hence, we differ with the view of the Tribunal that the appellant has not acted bonafide. There is nothing to indicate that the appellant was not acting bonafide and the appellant does not, in any event, stand to gain by virtue of not challenging the orders adverse to it. Incidentally the periods for which interest under Section 234E has been levied are all prior to 01.06.2015 when that provision was inserted into the Statute. 11.In this light of the matter, we condone the delay in filing appeals before the Tribunal, and restore the matters to the file of the Tribunal for hearing on merits, on 06.05.2025. No notice need be issued to the assessee separately in this https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 regard. 12.Tax Case (Appeals) are allowed by way of remand. No costs. Connected miscellaneous petitions are closed. (ANITA SUMANTH J.)(C.KUMARAPPAN J.) 22-04-2025 (2/2) vs Index:Yes Speaking order Neutral Citation:Yes To The Income Tax Officer, TDS, CPC, Ghaziabad. https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm ) TCA No. 373 of 2023 DR.ANITA SUMANTH J. AND C.KUMARAPPAN J. vs T.C.A.Nos.373, 381, 380, 379, 382, 389, 385, 384, 378, 377, 376, 375, 386, 383, 374, 390, 388 & 387 of 2023 and CMP.Nos.15378, 15365, 15323, 15318, 15319, 15331, 15328, 15325, 15362, 15355, 15347, 15316, 15315, 15306, 15311, 15338, 15336 & 15344 of 2023 22-04-2025 (2/2) https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/04/2025 03:15:28 pm )

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